Through the use of bypass fraud techniques, telecom piracy has thrived within the long distance and international call termination markets and with the use of these illegal methods, telecom pirates have obtained the capability to efficiently and economically terminate calls in the open market or through direct connections with operators. These deceivers utilize SIM boxes to circumvent the legitimate call termination charges of an operator, which not only increases profits, but also allows them to offer rates far below market value
A SIM box is a device, which holds SIM cards and is utilized as part of a VoIP gateway installation. The leading objective is to bypass the international gateway switches in order to bring mobile traffic into a country and have it appear as domestically originated traffic. A number of SIM cards are used to link the gateway but kept separately from it. SIM cards belonging to different mobile operators are installed in the SIM box and are permitted to work with globally positioned GSM gateways. With this setup, SIM Box owners are able to compete with carriers in wholesale markets where the cost for the SIM Box owner is much lower. This creates major revenue losses for mobile carriers.
Additionally, the Calling Line Identity (CLI) is not delivered because the CLI of the SIM used in the SIM Box is delivered instead, adversely affecting subscriber services and the subscriber’s experience. Because SIM Boxes are utilized for commercial purposes (although fraudulently), they do not exhibit the same calling behavior as the typical subscriber and increased utilization creates network congestion and limits legitimate subscriber traffic.